The global economy is in a state of turmoil. And the much-feared crisis is threatening Lower Normandy’s businesses. However, the Lower Normandy Regional Council is already offering support via its SME support scheme. And the council is not alone, the region’s leading economic players are also committed to helping its businesses. Introduction to the key measures involved.

The 3 departmental councils are also on the alert

The 3 departmental councils are also on the alert
- Faced with the declining economic situation, the Calvados Departmental Council, intends to play a trump card by voluntarily increasing its development programme authorisations.
To the 240 million Euros already budgeted for the coming three years, it will be injecting a further 60 million to support the local economy.
And half of the 60 million Euro supplement will be devoted to secondary schools (17 million) and roads (16 million).
- To challenge the economic crisis, the Orne Departmental Council has voted a supplementary investment budget of 10 million Euros. Within the framework of the economic recovery plan, the department is following in the footsteps of State-implemented measures: 9 million Euros devoted to developing road networks and 1 million Euros for secondary school building projects. This investment will reinforce the 66 million Euros already voted last November.
- The Manche Departmental Council is also supporting the recovery plan announced by the government. The council will be making an extra investment effort of over 15 million Euros per year, for the next 7 years, i.e. a total of over 100 million Euros for the period. And within the framework of the pluriannual investment plan, implemented for the coming 6 years, i.e. over 600 million euros, over 230 million will be released as early as 2009 and 2010.

Cold spell for the national economy. The French government has asked René Ricol, the financial ombudsman appointed by the President of the Republic, to encourage financial institutions to redistribute recently awarded credit among the nation’s businesses. During his visit to Caen last January, he insisted, “My mission is to save as many businesses as possible. It was urgent that we renew dialogue and create this mediation.” He has been acting as a government spokesman for several weeks now on the funding difficulties businesses now encounter and on their relationships with their banks. Getting the machine going again, by reviving credit or by “loosening up the banks” to quote him. If indeed, money is the nerve of the war, then cash flow is that of businesses; they need available funds to operate efficiently and to cover their short-term cash flow issues, overdrafts, client-supplier credit… it’s a matter of survival.

An 11 million Euro programme

From a local viewpoint, faced with this period of relative turbulence, measures are being developed to help temporarily vulnerable businesses. “The Lower Normandy Regional Council’s SME support scheme has, since last December, developed a number of steadfast and instant measures aimed at sustaining the region’s businesses,” highlights Jacques Le Vagueresse, the council’s director of innovation, research, economy and tourism. “To be frank, this is not a massive revival plan involving major road networks. It is nevertheless a vast, 11 million Euro programme which should facilitate coaching for the businesses which are suffering from the crisis, and should help them to immediately reorganise so that they can successfully outlive these hard times.” The automotive industry is particularly concerned, along with aquaculture and fishing, among others.
The Regional Council has consequently signed an agreement with OSEO. One of the key clauses of this agreement is the assurance of a guarantee for banks awarding loans to the region’s businesses. “It’s one of the tangible and immediate measures,” ensures Corinne Ferret, President of the Commission for Economic Development, trade, craft, employment, social economy and solidarity. “This agreement provides for a doubled regional guarantee fund (4 million Euros compared to the previous 2 million), which will enable the guarantee threshold to be tripled for OSEO’s partner businesses.” The Regional Council is also committed to reducing payment periods for businesses to whom regional tenders have been awarded, which should offer them more available cash.
And supporting businesses also means guiding them in the right direction in terms of advice. Hence, every Wednesday evening, the Préfet reunites the TPG - Trésorier payeur général (paymaster), the director of the Banque de France, consular chambers, employers’ organisations, inland revenue departments and a representative from the Federation of French Banks, in order to examine the cases of businesses the most in need of suitable guidance. Either a request for banking mediation via the website: mediateurducredit.fr, or another solution if the problem is of a structural nature.

A trusted third party

Since the 2nd of February 2009, businesses facing funding or cash flow problems can ask a trusted third party mediator to help them to clearly identify and express their funding needs and to increase their chances of meeting with success. For Lower Normandy, Philippe Dupuy, director of business consultancy and services at the Caen Chamber of Commerce and Industry is in charge of this task. “My role is to monitor the progression of each case, from the company to the mediator. I am in contact with VSE’s who, through lack of knowledge, time or training, are unable to identify their specific needs, or reluctant to approach the Banque de France, OSEO or the Regional Council.” He is also responsible for directing eligible VSE-SME’s towards appropriate ad hoc organisations.
And if the crisis continues? The Regional Council believes that a strong business, one that is looking to protect itself, is a business ready to innovate. “We will consequently be devoting 6 million Euros of support (twice the previous budget) to investment, innovation and export-related development, thanks to ARE’s (reimbursable business advances),” explains Laurent Beauvais, President of the Lower Normandy Regional Council. “Contrary to traditional grants, funding (limited at 700,000 Euros) will be provided without delay.” Given the current economic climate, this rapid response could well save businesses and jobs. Miriade’s(1) own scheme, entitled Rebond 09, aims at multipying and ensuring the success of innovative and assertive projects initiated by Lower Normandy’s businesses, R&D, consultancy and higher education institutions. Resourcefulness and anticipation are key words - hence the implementation of an active watch system which should help to foresee what the coming weeks (apparently the most difficult) have in store for our SME’s, in association with the State and the region’s key socio-professional players. Not only curative, but also preventive measures have therefore been set up to accompany our region’s SME’s. The ambition being that no business face the economic crisis alone.

(1) Miriade is a Local Public Establishment created by the Lower Normandy Regional Council within the framework of its mission for economic coordination, as per the French laws on decentralisation dating from 2004.

WebSite : The credit mediator

OSEO
Interactive vocal server:
0810 00 12 10
Site : Oséo

C. Lemasson
Lower Normandy Regional Council Economic Development Department
02 31 06 98 48
02 31 06 97 78

Philippe Dupuy
Trusted third party mediator
Caen Chamber of Commerce and Industry
CCI de Caen
Tél. : 02 31 54 54 89

Miriade
Rebond 09 Unicité 8, rue Alfred Kastler 14000 Caen
Tél. : 02 31 53 34 40
Site : Miriade

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